Incorporating In Delaware

Advantages of Incorporating in Delaware

Favorable Courts

The courts in Delaware are far more experienced in applications of corporate law, than courts in other states. Disputes are usually filed in the Delaware Court of Chancery, which is a court of equity different that of a court of law, because in a court of equity, there are no juries, with cases heard by and decided by judges called chancellors, with one chancellor hearing each case. Decisions are regarded as well thought-out and written by the legal community, and consequently easy to follow. The state also has invested in state-of-the-art imaging equipment, to process new filings very quickly. In additional, corporation formation documents can be filed electronically.

No Income Taxes

No income taxes are charged on corporations in Delaware, which makes it attractive. The state does levy a franchise tax on corporations which incorporate in it, which amount to about 20% o the states revenue, and considered to be just a cost of doing business by most corporations.

More than 50% of all publicly-traded corporations, and 58% of the Fortune 500 are incorporated in Delaware. Unlike most states, Delaware lacks usury laws, limiting the amount of interest a lender can charge, which is why credit card companies and other financial institutions prefer to incorporate there. The state also has number of business laws that assist a company with planning to avoid lawsuits.

Rules Are Fixed

Delaware’s General Corporation Laws have created a stable legal platform where the legal rules are fixed and unchanging, giving attorneys an added advantage, unlike other states which constantly change litigations rules without notice.

Low Costs

Initial charges for incorporating can be as low as $89.00, with most corporations charged $189, with annual franchise tax fees running about $60.00.

Operations cost are also low. Delaware does not charge corporations income tax for all corporations formed in Delaware as long as they do not transact business within the state. Shares of stock in Delaware corporations are not taxed if the owner lives out of state.

Some Other Costs of Incorporting in Delaware

• Employer Identification Number (EIN) - $50.00 As required by the IRS and also required by most banks so a company can open a business bank account.

• Certificate of Good Standing - $30.00 at formation, $60 thereafter. A paper statement from the Delaware Secretary of State, certifying that a company legally exists as a Delaware Corporation in good standing with the State of Delaware. This document is required by other states or countries when a company registers as a foreign company planning on doing business in their jurisdiction. Also required by banks to open a business bank account.

• Certified Copies - $30.00 at formation, $60 thereafter. Certified copies of certificates of incorporation supplied as required by other states when a company registers as a foreign company planning on doing business in their jurisdiction. Also required by banks to open a business bank account.

• Apostilles - $50.00 at formation, $80 thereafter A document required by a country when a company registers with them as a foreign company planning on doing business in their jurisdiction.

• Pre-Printed Delaware minutes and by-laws - $25.00
• Corporate Forms CD - $35.00
• Delaware Intercorp Acting As Registered Agent - $99